Key Insurance Coverages and What to Look For
Basic, Broad and Special Form Property Coverage
Basic form is the least comprehensive. It only provides coverage for named perils: Fire, Lightning, Windstorm or Hail, Explosion, Smoke, Riot or Civil Commotion, Vandalism or Malicious Mischief, Vehicles or Aircraft, Volcanic Action and Sinkhole Collapse.
Broad Form covers all Basic Form plus: Weight of Ice, Sleet or Snow, Water Damage, Falling Objects, Glass Breakage, Building Collapse
Special Form are the most inclusive coverage option. Special form covers your business for direct loss from all perils unless it is specifically excluded on the policy.
Building and Property Coverage- Actual Cash Value & Replacement Cost
Actual Cash Value (ACV) = Replacement Cost – Depreciation • Replacement Cost is the amount it would cost to repair or replace a damaged building or business personal property with the same material kind and quality as the original — in today’s market.
Replacement Cost requires that you insurance a building up to a percentage of the cost to rebuild with new materials of the same kind or quality. This is referred to as a Coinsurance Clause. If you fail to meet the clause, your policy coverage could be penalized.
Business Income
Covers loss of income suffered by a business when damage to its premises by a covered cause of loss causes a slowdown or suspension of its operations. Coverage applies to loss suffered during the time required to repair or replace the damaged property. It may also be extended to apply to loss suffered after completion of repairs for a specified number of days.
Equipment Breakdown
Coverage for loss due to mechanical or electrical breakdown of nearly any type of equipment. Coverage applies to the cost to repair or replace the equipment and any other property damaged by the equipment breakdown. Resulting business income and extra expense loss is often covered as well.
Crop Coverage
Three Types: Living plant material, harvested plant material/goods in process and finished stock • Must be inside building for coverage • Finished stock must be stored in a secure, locked safe or vault. During non- business hours, all finished stock must be kept locked, 1⁄2 ton or greater safe which is bolted to the floor or in a locked TL-15 rated or greater safe which is bolted to the floor or in a locked one ton or greater safe. This includes perishable items such as kif, butane hash, cookies and any other preparation of medical marijuana. Premises will also be required to have an operating and functional central station burglar alarm with motion detectors, contacts on all windows and doors open to the outside.
Premises must have been inspected by a licensed electrician who has determined that the electrical system is adequate for the nature of the operation
Cargo Coverage
Provides insurance on the freight or commodity hauled. It covers you for cargo that is lost or damaged due to causes such as fire, collision, or striking of a load.
Other Property Coverages
- Computer Equipment
- Glass
- Inland Marine
- Scheduled Property
- Excess Liability
- Several more endorsements are available
Liability Coverage
General Liability – protect them against liability claims for bodily injury (BI) and property damage (PD) arising out of premises, operations, products, and completed operations; and advertising and personal injury (PI) liability.
Products/Completed Operations – encompasses liability arising out of the insured’s products or business operations conducted away from the insured’s premises once those operations have been completed or abandoned.
Hired and Non-Owned Auto Liability
Workers Compensation
Read Your Policy Coverages and Exclusions
